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PROPOSAL from HYDRO SOLAR WATER COMPANY, LTD.

INTRODUCTION
Hydro Solar Water Company (HSW), formerly known as Adams Ale Company Ltd., designs and
manufactures machines which purify and desalinate water by means of a proprietary process.
HSW provides safe and abundant water for drinking, residential, agricultural, and commercial
purposes. The water provided by HSW is cheaper than the water supplied by other water utility
services, and it can be provided as bottled water or as direct to pipe municipal water. HSW’s
mission is to provide water where water is scarce, to improve the local economy of the customers
who use the water we produce, to provide more jobs to the communities we serve, and to
increase the crop yields on the farms and gardens of our customers. HSW desires to come first to
the community of Tiwawone Peul Niaga in Senegal, West Africa, and to provide water to all 12
villages in this community. HSW plans to also provide water to the rest of Senegal and then to
carry out this mission throughout Africa.
PROPOSED TERMS
1. WEST AFRICA REPRESENTATIVE: The representative of HSW in West Africa is
Ndiama Mané.

2. MACHINE NAME AND MODELS AVAILABLE: The name of HSW’s water machine
is the Aquonic, and the Aquonic is available in two models: (a) the portable model and
(b) the in-ground infrastructure model. The portable model is mounted on a truck which
can be driven and be set up to produce water to whatever location is accessible by truck.
The in-ground infrastructure model requires a permanent location, a concrete foundation
to which to fasten the Aquonic, excavation and lining of reservoirs, hookups to or
retrofitting to existing water piping systems, fencing and security gate, pumps, sheds, and
security systems. Customers will need to specify with an “X” or checkmark whether they
want the portable model or the in-ground infrastructure model. If the In-Ground
Infrastructure Model is ordered, HSW will provide engineered building plans, and local
Senegalese workers will be used to construct the infrastructure.
Portable Model In-Ground Infrastructure Model Both

3. PRODUCTS OFFERED: The water produced by HSW is offered in two forms: (a) as
bottled water; and (b) as direct to pipe water. Each governmental customer must specify
which product it will order by placing an “X” in the appropriate blank below:
Bottled Water Direct to Pipe Water Both

4. OWNERSHIP OF MACHINE: The ownership of the Aquonic remains with HSW, and
the Customer shall have no rights of ownership in the machine.

5. TERM AND MACHINE REPLACEMENT: The term of the Commercial Lease


Agreement is 36 months or 3 years. At the end of the term the Aquonic shall be replaced.

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6. THE USE OF THE MACHINE SHALL BE FINANCED AS A COMMERCIAL
EQUIPMENT LEASE: In addition to signing this PROPOSAL, the use of the Aquonic
by the Customer shall be in accordance with the terms of a Commercial Lease
Agreement, which will be signed between HSW, as Lessor, and the Customer, as Lessee.
7. LEASE PAYMENTS: The equipment lease payments by the customer to HSW shall be
paid monthly as follows:
a. Security Deposit in the amount of $100,000 for the Portable Truck Mounted Model or
$200,000 for the In-Ground Infrastructure Model. The Security Deposit must be paid
to HSW prior to any work by HSW being initiated on fabricating the Aquonic or any
of its accessories.
b. Maintenance Fee in the amount of $15,000 per month.
c. Water Production Fee in the amount of $0.10 (USA 10 cents) per liter.

8. FIRST MONTH FREE: Starting with the first day of operation and continuing for 30
days thereafter, the Maintenance Fee and the Water Production Fee shall not be charged
to the Customer. The Maintenance and Water Production Fees will begin to be charged to
the Customer on the 31st day of operation and continue thereafter.

9. WHO WILL OPERATE THE AQUONIC: Initially the employees of HSW will operate
the equipment, in order to ensure a trouble-free machine startup. Then HSW will
interview and hire local Senegalese youth to be trained and eventually operate the
Aquonic. The Senegalese machine operators will be paid well.

10. PROOF OF FUNDS: Manufacturing of the Aquonic machine, which will be shipped to
the Customer, will not begin until the following items are fulfilled:
a. That HSW receives a certified and notarized letter from the president of the
Customer’s bank, to which are attached both the latest monthly bank statement and
the daily statement dated the same day as the letter from the bank president. In this
letter the president of the bank must affirm and verify that the Customer has the
amounts in the Customer’s accounts which are stated on the statements, the dates
when the Customer’s accounts were opened, and that the Customer is current on all
payments to the bank and in good standing with the bank; and/or
b. That HSW receives documented verification that the Customer has applied for, been
approved for, and received a loan from the World Bank to pay all of HSW’s fees;
and/or
c. That HSW receives a Letter of Credit from the Customer’s bank or from the World
Bank or another highly rated bank to guarantee the payments of the Customer to
HSW.
d. The minimum amount of the Letter of Credit or loan from the World Bank is total
cost of building the infrastructure plus the sum of all the projected fees due to be paid
to HSW during the first year of operation.

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11. LIMITED WARRANTY: The Customer will be protected by the following limited
warranty:
a. Any defects in materials or workmanship under normal use are covered during the
warranty period.
b. During the warranty period the Lessor will repair or replace, at no charge to the
Lessee, the Equipment or any parts of the Equipment leased by the Lessee, which
proved defective because of defective materials or workmanship, under normal use
and maintenance.
c. The warranty period is three (3) years from the date the Aquonic begins operating.

12. MAINTENANCE: Throughout the term of the Lease, the Lessor is responsible for the
service, repair, and maintenance of the Equipment. However, the Lessee shall pay for the
service, repair, and maintenance of the Equipment through the payment of a monthly
Maintenance Fee and the payment of commercial liability insurance.

13. ITEMS LESSEE IS RESPONSIBLE TO PAY: The Lessee/Customer is responsible to


pay for any damage to the Equipment caused by the Customer, and to pay local and
national taxes, insurance coverage on the Equipment, utilities, any government permits,
and shipping costs from HSW to Customer.

14. COMPLIANCE WITH APPLICABLE LAWS: Lessor shall exercise due care in its
operation, use, and maintenance of the Equipment. Lessor shall not use, and shall not
allow others to use, the Equipment in any manner which would violate applicable laws,
rules, regulations, or other governmental directives.

15. OTHER TERMS AND CONDITIONS: Other standard legal terms and conditions shall
be covered in detail in the Commercial Equipment Lease signed by the Customer and
HSW. These will include but not be limited to the following: Safety warnings, default,
remedies of default, indemnification, entire agreement, assignment, notices, etc.

SIGNATURES
Signed by Date
Printed Name Ndaima Mané Position Senegal Rep. of HSW
Community/City/Village Name/Address
The identity of the above-named signatory was personally verified by me, and this instrument
was acknowledged before me on November , 2023.
Notary stamp or seal
Signature:
Notary or other officer
My commission expires:

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Signed by Date
Printed Name Mr. Momar Sokhna Diop Position Mayor
Community/City/Village Name/Address
The identity of the above-named signatory was personally verified by me, and this instrument
was acknowledged before me on November , 2023.
Notary stamp or seal
Signature:
Notary or other officer
My commission expires:

Signed by Date
Printed Name Boubou Sow Position Village Chief
Community/City/Village Name/Address
The identity of the above-named signatory was personally verified by me, and this instrument
was acknowledged before me on November , 2023.
Notary stamp or seal
Signature:
Notary or other officer
My commission expires:

Signed by Date
Printed Name Position
Company Name & Address Hydro Solar Water Company
The identity of the above-named signatory was personally verified by me, and this instrument
was acknowledged before me on November , 2023.
Notary stamp or seal
Signature:
Notary or other officer
My commission expires:

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